Ultralife Corporation Reports Fourth Quarter Results
February 12 2015 - 7:00AM
Ultralife Corporation (Nasdaq:ULBI) reported operating income of
$1.0 million on revenue of $19.9 million for the quarter ended
December 31, 2014. For the fourth quarter of 2013, the Company
reported operating income of $0.2 million on revenue of $20.2
million.
"Consistent with our objectives, in 2014 we realized initial
returns on the new product development investments made in power
systems designed for medical devices and carts, portable power
solutions, and integrated communications systems, while we expanded
our global sales footprint. Battery & Energy Products
contributed profitable growth with sales of commercial products
increasing 32% and representing 62% of the segment's sales mix for
the year, further diversifying its non-government/defense revenue
base," said Michael D. Popielec, Ultralife's President and Chief
Executive Officer.
"Financially, our fourth quarter results reflect successful
execution and demonstrate the operating leverage of our business
model. We generated a consolidated gross margin of 31.7%, up 400
basis points over last year, and an operating income of $1.0
million. Having brought 2014 to a close on a strong note, the
elements of our long-term strategic and operational plans are
coalescing, and we are heading in the right direction to generate
organic top-line growth and profitability in 2015," concluded
Popielec.
Fourth Quarter 2014 Financial Results
Revenue was $19.9 million, compared to $20.2 million for the
fourth quarter of 2013, a $0.2 million or 1% decline reflecting an
increase of $0.9 million in Battery & Energy Products sales,
offset by a $1.1 million decrease in Communications Systems sales.
Battery & Energy Products sales were $16.8 million,
compared to $15.9 million last year, a 6% increase, with sales to
commercial customers increasing 47% and Government/Defense sales
decreasing 24%. Communications Systems sales were $3.2
million, compared to $4.3 million for the same period last year, a
decrease of 26% reflecting ongoing soft order flow for amplifiers
for U.S. Government/Defense tactical radios. On a consolidated
basis, sales to commercial customers accounted for 49% of total
revenue, up from 33% last year.
Gross profit was $6.3 million, or 31.7% of revenue, compared to
$5.6 million or 27.7% of revenue for the same quarter a year ago.
The 400 basis point increase primarily reflects the increased sales
of higher margin commercial products, favorable mix of new products
and increased production volumes leading to Lean productivity gains
and overhead leverage. Battery & Energy Products gross
margin was 30.0%, 390 basis points higher than the 26.1% reported
last year, and Communications Systems gross margin was 40.6%, a 710
basis point improvement from the 33.5% reported last year.
Operating expenses were $5.3 million compared to $5.4 million
last year reflecting ongoing discretionary spending discipline
while investing in new product development. Operating
expenses were 26.5% of revenue, compared to 26.6% for the year
earlier period.
As a result of the increase in gross profit and lower operating
expenses, the Company reported operating income of $1.0 million
compared to $0.2 million last year and a 410 basis point
improvement in the operating margin to 5.2% from 1.1% last
year. Adjusted EBITDA, defined as EBITDA including
non-cash, stock based compensation, was $2.1 million, or 10.4% of
revenue, compared to $1.4 million, or 6.9% of revenue for the same
quarter a year ago. And, net income was $0.9 million, or $0.05
per share, compared to $0.1 million, or $0.01 per share for the
fourth quarter of 2013.
During the fourth quarter, Ultralife repurchased 56,197 shares
under its 1.8 million share repurchase program. About
Ultralife Corporation
Ultralife Corporation serves its markets with products and
services ranging from power solutions to communications and
electronics systems. Through its engineering and collaborative
approach to problem solving, Ultralife serves government, defense
and commercial customers across the globe.
Headquartered in Newark, New York, the Company's business
segments include Battery & Energy Products and Communications
Systems. Ultralife has operations in North America, Europe and
Asia. For more information, visit www.ultralifecorp.com.
Conference Call Information
Ultralife will hold its fourth quarter earnings conference call
today at 10:00 AM ET. To participate in the live call, please dial
(800) 915-4836 at least ten minutes before the scheduled start
time, identify yourself and ask for the Ultralife call. A live
webcast of the conference call will be available to investors in
the Events & Presentations section of the Company's website at
http://investor.ultralifecorporation.com. For those who cannot
listen to the live broadcast, a replay of the webcast will be
available shortly after the call at the same location.
This press release may contain forward-looking statements based
on current expectations that involve a number of risks and
uncertainties. The potential risks and uncertainties that could
cause actual results to differ materially include: potential
reductions in U.S. military spending, uncertain global economic
conditions and acceptance of our new products on a global basis.
The Company cautions investors not to place undue reliance on
forward-looking statements, which reflect the Company's analysis
only as of today's date. The Company undertakes no obligation to
publicly update forward-looking statements to reflect subsequent
events or circumstances. Further information on these factors
and other factors that could affect Ultralife's financial results
is included in Ultralife's Securities and Exchange Commission (SEC)
filings, including the latest Annual Report on Form 10-K.
ULTRALIFE CORPORATION
AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(Dollars in
Thousands) |
(unaudited) |
|
|
|
ASSETS |
|
December
31, |
|
2014 |
2013 |
Current assets: |
|
|
Cash and cash equivalents |
$ 17,866 |
$ 16,489 |
Trade accounts receivable,
net |
11,295 |
14,238 |
Inventories, net |
26,086 |
26,053 |
Prepaid expenses and other
current assets |
1,583 |
1,878 |
Total current assets |
56,830 |
58,658 |
Property, equipment and improvements,
net |
9,812 |
10,202 |
Goodwill, intangibles and other assets |
20,980 |
21,334 |
Total assets |
$ 87,622 |
$ 90,194 |
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
Current liabilities: |
|
|
Accounts payable |
$ 6,996 |
$ 7,053 |
Accrued compensation and
related benefits |
1,725 |
1,908 |
Accrued expenses and other
current liabilities |
2,470 |
3,214 |
Total current liabilities |
11,191 |
12,175 |
Deferred income taxes and other non-current
liabilities |
4,518 |
4,374 |
Total liabilities |
15,709 |
16,549 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Shareholders' equity: |
|
|
Common stock |
1,895 |
1,888 |
Capital in excess of par
value |
175,939 |
174,932 |
Accumulated deficit |
(96,920) |
(94,804) |
Accumulated other comprehensive
loss |
(467) |
(614) |
Treasury stock |
(8,420) |
(7,658) |
Total Ultralife
equity |
72,027 |
73,744 |
Noncontrolling interest |
(114) |
(99) |
Total
shareholders' equity |
71,913 |
73,645 |
|
|
|
Total liabilities
and shareholders' equity |
$ 87,622 |
$ 90,194 |
|
ULTRALIFE CORPORATION
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(In Thousands except
per share amounts) |
(unaudited) |
|
|
|
|
|
|
Three month periods
ended |
Year
ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
Revenues: |
|
|
|
|
Battery & energy
products |
$ 16,772 |
$ 15,861 |
$ 56,772 |
$ 57,077 |
Communication systems |
3,176 |
4,315 |
9,722 |
21,758 |
Total
revenues |
19,948 |
20,176 |
66,494 |
78,835 |
|
|
|
|
|
Cost of products sold: |
|
|
|
|
Battery & energy
products |
11,745 |
11,714 |
41,256 |
42,739 |
Communication systems |
1,886 |
2,869 |
5,888 |
13,475 |
Total cost of products
sold |
13,631 |
14,583 |
47,144 |
56,214 |
|
|
|
|
|
Gross
profit |
6,317 |
5,593 |
19,350 |
22,621 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
1,323 |
1,403 |
5,333 |
5,859 |
Selling, general and
administrative |
3,962 |
3,967 |
15,460 |
17,386 |
Total operating expenses |
5,285 |
5,370 |
20,793 |
23,245 |
|
|
|
|
|
Operating income (loss) |
1,032 |
223 |
(1,443) |
(624) |
|
|
|
|
|
Other (expense) income: |
|
|
|
|
Interest income |
1 |
12 |
13 |
39 |
Interest and financing
expense |
(65) |
(39) |
(218) |
(238) |
Miscellaneous |
(26) |
5 |
(154) |
(26) |
Income (loss) from continuing
operations before income taxes |
942 |
201 |
(1,802) |
(849) |
Income tax provision |
91 |
104 |
268 |
239 |
|
|
|
|
|
Net income (loss) from continuing
operations |
851 |
97 |
(2,070) |
(1,088) |
Income (loss) from discontinued operations,
net of tax |
-- |
(31) |
(61) |
128 |
|
|
|
|
|
Net income (loss) |
851 |
66 |
(2,131) |
(960) |
Net loss attributable to non-controlling
interest |
2 |
3 |
15 |
34 |
|
|
|
|
|
Net income (loss) attributable to
Ultralife |
853 |
69 |
(2,116) |
(926) |
Other comprehensive
income: |
|
|
|
|
Foreign currency translation
adjustments |
(17) |
(47) |
147 |
6 |
|
|
|
|
|
Comprehensive income (loss)
attributable to Ultralife |
$ 836 |
$ 22 |
$ (1,969) |
$ (920) |
|
|
|
|
|
Net income (loss) per share
attributable to Ultralife common shareholders –
basic: |
|
|
|
|
Continuing operations |
$ .05 |
$ .01 |
$ (.12) |
$ (.06) |
Discontinued operations |
.00 |
.00 |
(.00) |
.01 |
Total |
$ .05 |
$ .00 |
$ (.12) |
$ (.05) |
Net income per share attributable to
Ultralife common shareholders – diluted: |
|
|
|
|
Continuing operations |
$ .05 |
$ .01 |
|
|
Discontinued operations |
.00 |
.00 |
|
|
Total |
$ .05 |
$ .00 |
|
|
|
|
|
|
|
Weighted average shares outstanding –
basic |
17,374 |
17,477 |
17,475 |
17,465 |
Weighted average shares outstanding –
diluted |
17,513 |
17,572 |
|
|
CONTACT: Company Contact:
Ultralife Corporation
Philip A. Fain
(315) 210-6110
pfain@ulbi.com
Investor Relations Contact:
LHA
Jody Burfening
(212) 838-3777
jburfening@lhai.com
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